ESA/STAT/AC.301
UNCEEA/10/3a
DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS
STATISTICS DIVISION
UNITED NATIONS
_____________________________________________________________________________
Tenth Meeting of the UN Committee of Experts on
Environmental-Economic Accounting
New York, 24-26 June 2015

The intention is that this annex will eventually analyse for each relevant thematic area the extent and way in which SDG monitoring and reporting mechanisms can be aligned with the SEEA standard.
This will involve: 1) an analysis of the global indicators proposed by international organizations to the
Inter-Agency and Expert Group on SDGs for each thematic area, and alignment of the definitions and classifications used with the SEEA standard; 2) an assessment of existing global datasets and the extent to which they are aligned and/or can be aligned with the SEEA standard, and; 3) an assessment of the extent to which data sources exist at the national level for the population of the core/minimum set of SEEA accounts needed to inform these indicators
The SEEA-Water was already recognised as an interim standard in 2007, and a large number of countries are already well-advanced with the implementation of SEEA water accounts. The Global
Assessment on Environmental-Economic Accounts conducted in 2014 indicated that of the 85 countries which responded, 23 already compile water accounts while a further 28 plan to begin compilation in the near future. For these reasons, water has been chosen as the first thematic area for which this analysis should take place. In addition, efforts are underway to make Sustainable
Consumption and Production indicators SEEA compliant, and consultants are engaged to address the abovementioned issues and develop an implementation strategy. A draft Terms of Reference for these
SCP consultants is provided on the website of the 10 th meeting of the UNCEEA.
With this eventual goal in mind, this annex will start by exploring the importance of developing an integrated information system for water which is based on statistical standards, and as a first step, present preliminary efforts to align SDG indicator proposals with the SEEA standard.
A1. Overview
This paper has argued that basing the SDG indicator framework on statistical standards such as the
SEEA and SNA is crucial to ensuring the production of high quality indicators which are internationally comparable and based on international best practice. In addition, by defining the SDG indicator architecture according to standards, methodological consistency is ensured across and between different levels of monitoring. A standards-based approach will also consolidate the system for global reporting and reduce national response burdens. Basing international agencies' reporting initiatives on statistical standards aligns the methodology used by each reporting framework, thereby facilitating more direct transmission of information from National Statistical Systems through a common interface to various international reporting initiatives. As each request for information is based on consistent definitions, classifications and spatial units, the burden on countries to make methodological adjustments is reduced in the long term.
The compilation of statistics and international reporting on water-related issues is a crucial area in which alignment to statistical standards must take place. The structure of the statistical system for water reflects the diversity of issues relating to water both at the national and international level. At the national level, water statistics are dispersed in reflection of the multitude of sectors for which water is a key concern, resulting in a siloed production of data which is difficult to combine to obtain complete and integrated understanding of the hydrological system and its relationship with the

economy and societal wellbeing. Similarly, a large number of international organizations operate within the water sector, each with specific thematic concerns and targeted policy frameworks. This has resulted in a number of well-established global reporting mechanisms to address specific policy concerns, each based on individual methodologies and compiling data on a variety of water related issues.
Attempts to integrate water policy have been widespread at the national level, in particular through the adoption of an integrated water resources management approach and close cooperation between different ministries and groups to ensure coordinated development and management of water, land and related resources, with the goal of maximizing economic and social welfare in an equitable manner without compromising the sustainability of vital ecosystems. At the international level, a wide range of international organizations work to improve water related issues within specific thematic areas, coordinated under the umbrella of UN-Water which works to strengthens cooperation among all UN agencies working on all aspects of freshwater and sanitation, including surface and groundwater resources, the interface between freshwater and seawater and water-related disasters.
Improvements in the monitoring mechanisms for water are now needed to support these efforts. In this regard, the System of Environmental Economic Accounts for Water presents a statistical framework to harmonize and organise water statistics within an accounting structure. It represents an important tool for countries to build an information system to inform water policy which adequately captures the inter-linkages between sectors competing for water, the societal and economic impacts of competing demands for water, and the impact of the economy on water resources and their quality in the longer term. Furthermore, adoption of the SEEA-Water as the statistical framework for global reporting mechanisms for water in the context of the SDGs would promote methodological consistency across all levels of reporting and between currently incompatible global datasets.
Harmonization of the global reporting mechanisms for water in alignment with the SEEA, in combination with national capacity building to compile SEEA accounts for water, would significantly improve the ability of countries to meet monitoring needs for SDG 6.
As mentioned, the SEEA-Water can support a standards-based monitoring framework for water, from which global indicators can be derived from SEEA aligned global reporting mechanisms while at the same time providing methodological scope for countries to compile more detailed and disaggregated indicators depending on policy needs. Achieving this will require a process of transition, based on the following important steps:
A.
Develop a SDG indicator architecture for water which is aligned with the SEEA
B.
Assess existing global data sources and their associated methodologies, and the extent to which these can be used to compile 2016 baselines for indicators defined according to SEEA standards
C.
Develop a programme of work to create a global reporting framework for SDG 6 which is aligned with the SEEA
I.
Where reporting mechanisms are in place:
-
In the short term, where global datasets are established but not aligned with standards, develop methods to bridge/adapt existing data to calculate baselines in alignment with the SEEA
-
In the longer term, develop a joint programme of work with relevant organizations to align established reporting mechanisms with the SEEA standard

II.
When monitoring mechanisms do not exist (and data is not available): develop these mechanisms in line with SEEA standards
D.
Develop a joint programme of work among international organisations to support national capacity to compile water-related information in a sustainable way and in full alignment with the SEEA standard
Significant efforts have already been made by UNSD to complete step A and align the global indicators proposed by UN-Water and other international organizations to the International-Agency and Expert Group on SDGs (IAEG-SDGs) with the SEEA standard. This work is presented in section
A3, with the expectation that future work will review and build on this. For the purposes of illustration, the remainder of this annex will provide an overview of the SEEA-Water and the scope of alignment which can take place. It will present a brief explanation of the value of implementing
SEEA-Water in countries to support national statistical systems in the development of integrated information on water. It will then present the work done on aligning the global indicators being proposed to the IAEG-SDGs for Goal 6, and provide an overview of the potential of SEEA-Water methodology to disaggregate global indicators at the national level, as well as use the SEEA accounts to derive supplementary national information to monitor and inform specific targets.
A2. Mainstreaming Water in the Integrated Statistical System
Water is an integral component of sustainable development and is critical for socio-economic development, healthy ecosystems, human survival and health. It has been reflected as such in the
Sustainable Development Goals, both as a stand-alone goal and an enabler for achieving a number of other Goals. The extent to which water is linked with the sustainable production of energy, food and adaptation to climate change requires an integrated approach to policy decisions based on a full understanding of the hydrological cycle and its relationship with the economy, social well-being and other natural systems. Given the diversity of issues to which water is a primary concern, a siloed approach to water policy often results, in which different sectors compete for scarce water resources and exert negative externalities on other sectors and groups through their use of and impact on the hydrological system.
In reflection, national statistics on water are typically dispersed across multiple responsible ministries and agencies. In particular, agricultural ministries often collect information on water use and emissions of water residuals by the agricultural sector. Water agencies responsible for municipal water supply collect information on the supply of water to households and industries connected to the water grid, both in cities and rural areas, as well as the generation and treatment of sewerage.
Information on water use by mining and energy sectors, as well as heavy manufacturing is again likely collected by different ministries. Furthermore, the health of water-related ecosystems and their capacity to provide ecosystem services are typically the domain of environment ministries, and the capacity of water-related ecosystems to provide protection against natural disasters may be monitored by city planning, defence and/or many other national agencies.
To support the development of integrated water policies, this information should to be brought together into one system to understand, among other things, patterns of water use and re-use across sectors, flows of water between sectors, how the hydrological system impacts different sectors of the economy, and the extent to which different sectors affect the availability of water resources and the quality of these resources in the short and longer term. In this regard, this section will briefly present the key sets of information needs which are likely to arise in national water policy considerations,

based on a brief analysis of what may be considered the four main quadrants of water policy. It will then describe the SEEA-Water accounts and how they can inform these quadrants.
In general, water policy can be grouped into four main quadrants as illustrated in figure 1. These are reflected in the Sustainable Development Goals on Water, which cover a range of targets to address specific components of this broader framework. In view of the information needs identified in figure
1, the SEEA-Water provides a strong conceptual framework to harmonize and bring together the necessary economic and hydrological information relevant to these broad policy areas, based on a number of tables and accounts. In general there are five main accounts which capture various aspects of this system and are described briefly in figure 2.
Figure 1: Policy Quadrants, SDG targets and Corresponding Information Needs
Figure 2: Overview of SEEA-Water Accounts
PHYSICAL SUPPLY AND USE TABLES (PSUT) for water bring together hydrological data on the volume of water used and discharged back into the environment by the economy. They provide information on the volumes of water exchanged between the environment and economy (abstractions and returns) and also within the economy (supply and use within the economy 1 ). The physical supply and use tables for water describe three types of flow; a) environment to economy, b) within economy and c) economy to environment.
Bringing this information together under the common framework of the SEEA means the information is presented using definitions and classifications of the standard economic accounts of the SNA. This information is particularly relevant to Policy Quadrants I and II.
1 This includes re-used water and waste-water to sewerage

EMISSION ACCOUNTS describe the pressure that the economy puts on the environment in terms of emissions into water. They bring together information on the quantity of pollutants that is added to wastewater, as well as the quantity removed as part of treatment by the sewerage industry. This information is particularly relevant to Policy Quadrants II and III.
ASSET ACCOUNTS measure stocks of water resource assets in physical terms at the beginning and end of an accounting period, describing all changes in the stock due to both natural and human activities. These accounts help to link water abstraction and returns to water availability in the environment, thereby providing information on economic pressures being exerted on water resources. This information is particularly relevant to Policy Quadrant II.
COMBINED PRESENTATIONS 2 link physical information in the PSUT with emissions information and monetary information on the production (supply) and consumption (use) of water related products. The monetary part of the tables identifies two water-related products; natural water exchanged between economic units and sewerage services 3 . Depending on the issue of interest, combined presentations can provide information on; 1) the costs associated with the production of water-related products; 2) the income generated by their production and 3) the investment in water related infrastructure and costs to maintain that infrastructure. Combining physical and monetary data in a coherent way makes the analysis of trade-offs in alternative water policies and economic strategies possible, and allows for the calculation of important indicators such as water efficiency. This information is particularly relevant to Quadrants I and II.
ECONOMIC ACCOUNTS for activities and products related to water include a range of accounts on the costs of water use and supply as well as its financing. The combined presentations described above can be expanded to provide information on the intermediate costs and outputs of water related activities carried out for own-use by households and industries (to fully reflect the contribution of water-related activities to the economy). They can also be expanded to government expenditures for water services such as administration of policy and enforcing standards. Specific economic accounts can also provide information on government instruments used to regulate water in the economy. In addition, national expenditure accounts for water related activities provide information on the expenditure by different economic units within a country on environmental protection and resource management activities related to water. Financing accounts provide information on the financing of this national expenditure by identifying the financing sector and its beneficiaries for these activities. These accounts are useful tool for informing cost-recovery policies and water allocation policies, making this information relevant to all Policy Quadrants.
EXPERIMENTAL ECOSYSTEM ACCOUNTS 4 can provide information on a number of issues relating to water in four contexts; 1) water as an ecosystem asset, 2) water as a characteristic of ecosystem asset condition; 3) the provision of water as an ecosystem service, and 4) water related ecosystem services. These accounts provide much of the biophysical information necessary for tracking changes in extent and condition of water-related ecosystems, as well as for measuring the ecosystem services provided (such as water filtration, regulation or retention). They can be used to identify water-related ecosystems declining in quality, and the economic and other uses dependent on them, and hence allow for the targeting of investment in remediation to achieve the greatest overall benefit. This information is particularly relevant to policy quadrant III and IV.
To illustrate how the SEEA-Water accounts can strengthen the global monitoring framework for SDG
6, the following section provides a preliminary illustration of how information in the accounts can be used inform relevant indicators at all levels within one methodologically coherent indicator framework for water.
2 Also referred to as Hybrid Accounts
3 Including sewerage treatment and septic tank cleaning services
4 Experimental Ecosystem Accounts are an extension to the SEEA Central Framework and are still experimental.

A3. Developing a Standards-based Indicator Architecture for SDG 6
As described in box 2, the Indicators Architecture for the SDGs will consist of a number of global indicators for reporting at the international level, complemented by a range of national and thematic indicators which countries may compile based on capacity and depending on their policy priorities. A list of global indicators to monitor SDG 6 on water has been compiled and submitted to the Inter-
Agency and Expert Group on SDG Indicators, based on input from multiple agencies and coordinated by UN-Water. Many of these indicators can be directly measured using SEEA-Water methodology, and it is therefore important to ensure that efforts are made to align these indicators to the SEEA standard in the short term.
This section will therefore consider each Global Indicator in turn and provide initial guidance on how this can be defined in alignment with SEEA methodology. To complement this, an illustration of how these global indicators can be disaggregated for national purposes and what types of additional contextual information can be obtained from the SEEA-Water accounts to complement the Global
Indicators is described.
--------------
Target 6.1 - By 2030, achieve universal and equitable access to safe and affordable drinking water for all
Target 6.2 - By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations
Global Indicators proposed by UN-Water
6.1.1
Percentage of population using safely managed drinking water services
6.2.1
Percentage of population using safely managed sanitation services
6.2.2
Population with a hand washing facility with soap and water in the household
Alignment to SEEA: Much of the information required to calculate the proposed indicators goes beyond the scope of the SEEA-Water and requires more detailed household information based on censuses, administrative sources and surveys. While the SEEA-Water accounts do not directly inform these indicators, efforts should be made where relevant and necessary to align definitions and methodologies with the SEEA standard.
Related Information for National Policy: The SEEA-Water accounts can however assist national policy makers to understand the role and contribution of the household sector in the hydrological system, as well as economic information which will impact policy design. Particularly relevant information contained in the accounts includes:
-
Contextual Information in Physical Terms regarding the amount of water supplied to households and the amount of wastewater generated by them, as well as the relative importance (in physical terms) of households in total consumption of drinking water and generation of sewerage products within the economy. This is provided in the PSUT for water, which also includes relevant information on the efficient operation of the water system, such as losses in distribution, which can significantly affect the capacity of utilities to provide a reliable service to the population.
-
Contextual Information in Monetary Terms is provided in the combined presentations which present information on the cost and expenditure structure for water and sanitation, including the significance of water related products in industries’ output and expenditure on (intermediate and

final) consumption of water related products by economic units, particularly households. The combined presentations record actual final consumption of water related products (both for households and governments), which allows for comparison of expenditures on household consumption of water related products over time, independent of the mechanisms in place to fund that consumption.
-
Information on Fixed Capital Formation for water supply and sanitation services is included in the combined presentations, to inform policy makers on investments being made to maintain and/or improve infrastructure for water supply and sanitation.
-
Information on national expenditures on water related activities provides information on expenditure by different economic units (including but not limited to government) on environmental protection activities, available in the Economic Accounts for water.
Furthermore, the UN-Water GLAAS TrackFin initiative is developing a methodology to track finance to the water, sanitation and hygiene sector (WASH) in a coherent and consistent manner so as to inform policy and promote effective financing in meeting development goals in this area. Efforts are being made to make the methodology consistent with the SNA, the SEEA and the SEEA-Water.
Target 6.3 - by 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater, and increasing recycling and safe reuse by x% globally
Global Indicator proposed by UN-Water:
6.3.1 Percentage of wastewater safely treated (a composite indicator based on treatment ladders for domestic and industrial waste water)
SEEA-Aligned Global Indicator: The indicator proposed by UN-Water can be made compliant with the SEEA standard and informed by the SEEA accounts.

6.3.1 SEEA-Aligned Definition: Percentage of wastewater that undergoes [Primary/
Secondary/ Tertiary] treatment
The information to inform this indicator can be derived from the Physical Supply and Use Tables
(PSUT). This alignment, including detailed definitions and data items, is illustrated in more detail in figure 3 at the back of this annex
National SEEA Indicators on Wastewater: More detailed indicators for national monitoring purposes can also be calculated based on the PSUT, including for example disaggregation of the global indicator by economic activity and for the separate calculation of wastewater treatment rates for households. This is because the PSUT essentially break down flows of water to and from economic units by economic activities 5 , with ISIC divisions 36 (water collection, treatment and supply) and 37 (sewerage) identified separately. These are the key industries for the distribution and treatment of water and wastewater.
Once water is used by an economic unit and is of no further value to it, then it becomes wastewater. It can then be discharged directly into the environment (recorded as a return flow), supplied to a treatment facility (ISIC 37) and recorded as waste water to sewerage or supplied to
5 Using the International Standard Industrial Classification (ISIC)

another industry for further use and recorded as re-used water. As a result, aggregate indicators for re-use of wastewater can also be derived from the accounts as well as disaggregation by economic activity to identify the key sectors and industries driving these averages.
Incorporation of this physical data into combined presentations means the information can also be linked with corresponding expenditure and investment in the provision of services related to wastewater.
National SEEA Indicators on Emissions: the Water Emissions Accounts can also be used at national level to inform the part of the target relating to release of pollutants and water quality.
Emissions accounts describe the flow of pollutants added to wastewater as a result of production and consumption, and emissions flowing into water resources directly or indirectly through the sewerage network;
The Emissions Accounts report the total amount of a pollutant added to water by an economic unit measured at the point of discharge, disaggregated into the quantity of the pollutant released directly to the environment and the quantity of pollutant released into the sewer system with wastewater.
Emissions to the sewerage system are then treated, and the remaining emissions from the sewerage industry into the environment are re-allocated to the contributing industry/sector.
The emissions accounts can therefore provide information on the attribution of emissions to different industries/sectors, as well as the structure of those flows (i.e. direct or via sewerage facilities).
Target 6.4 - by 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity, and substantially reduce the number of people suffering from water scarcity.
Global Indicators Proposed by UN-Water:
6.4.1 Percentage of change in water use efficiency over time
Sectoral efficiencies, including agriculture, industry, energy, municipal, are aggregated in a single indicator through the use of weighting coefficients proportional to each sector’s share of total water withdrawal/ consumption. The unit for efficiency can vary between the sectors, e.g. revenue in dollars for industry, energy production in kWh for energy or in kcal for agriculture.
6.4.2 Percentage of total available water resources used, taking environmental water requirements into account (Level of Water Stress)
Defined as the ratio between total water withdrawals (use) by all sectors and available water resources, taking environmental water requirements (EWR) into account.
SEEA-Aligned Global Indicators: The indicators proposed by UN-Water can be made compliant with the SEEA standard and informed by the SEEA accounts.

6.4.1 SEEA-aligned definition: Water Productivity 6 (defined as GDP / Total Water Use)

6.4.2 SEEA-aligned definition: Water Stress (defined as Total Water Abstraction / Total
Actual Renewable Water Resources)
6 Note: Can also calculate as percentage change

The information to inform this indicator can be derived from the physical supply and use tables and the asset accounts of the SEEA-Water. This alignment, including detailed definitions and data items, is illustrated in more detail in figures 4 and 5 at the back of this annex
National SEEA Indicators: While global indicators may be calculated at the aggregate level, countries can use the accounts for further disaggregation by economic activity as the structure of the physical supply and use tables provide detailed information on water abstraction and use by ISIC category and for households. This information can be easily combined with information on value added from the SNA, as it is based on the same classifications. In particular:

Water Productivity can be disaggregated by economic activity according to ISIC, calculated as : Value added by ISIC (from the SNA) / Total water use by ISIC

Water-use Efficiency can also be calculated for households as : Total water use by households
/ Total population
Furthermore, detailed information on the sustainability of withdrawals can be derived from the asset accounts which may be useful for national policy decisions beyond the information provided by the global indicator. The asset accounts for water illustrate changes in stocks of inland water resources over an accounting period, attributing these either to human or environmental flows;
The use of asset accounts over time will provide policy makers with key information on water levels, and the extent to which different types of water stock (i.e. surface water, groundwater and soil water) are being depleted over time.
The evolution of the changes in stocks, and in particular the extent to which human pressures (in the form of abstractions) are causing reductions in stocks of water can also be monitored using the asset accounts.
Spatial disaggregation is possible at the basin or regional level using SEEA accounts.
Target 6.5 - By 2030, implement integrated water resources management at all levels, including through trans-boundary cooperation as appropriate
Global Indicator Proposed by UN-Water:
6.5.1 Degree of integrated water resources management (IWRM) implementation (0-100)
The SEEA-Water cannot inform this indicator which will be based on a questionnaire. For this target,
SEEA-Water should be considered as a tool that functions in support of IWRM by providing the information system to inform this integrated decision making approach.
Target 6.6: by 2020 protect and restore water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers and lakes
Global Indicator Proposed by UN-Water:
6.6.1 Change in wetlands extent over time
I.e. % change over time using an existing methodology for data collection and analysis to calculate a global average of change in wetland extent and can be disaggregated geographically and by wetland type - the Ramsar broad definition of "wetland" is used

This indicator cannot be informed by the SEEA Central Framework. Moving forward, as the SEEA
Experimental Ecosystem Accounts are advanced, the Ecosystem Unit (EU) described in the SEEA
EEA Technical Guidance 2015 will be able to provide a framework for classifying wetland assets.
The wetland EU can be tailored to country needs and be linked to condition assessments and wetland ecosystem services. The wetland EU can be adapted to both international (Ramsar) and national systems of wetland classifications.
--------------

Supplementary information for Alignment of SDG indicators 6.3.1, 6.3.2 and 6.3.3
Figure 3: Aligning Global Indicator 6.3.1 to SEEA definitions and methodology
SEEA Aligned Indicator
6.3.1 Percentage of Wastewater that undergoes
[primary/secondary/tertiray] treatment
Total Wastewater Generated that undergoes
[primary/secondary/tertiray] treatment / Total Wastewater
Generated
SEEA Definition of Terms
Wastewater: Water that is of no further immediate value with regard to the purpose for which it had been used or in the pursuit of which it was produced, because of its quality, quantity or time of occurrence.
Treatment Definitions:
-- Primary Treatment : A mechanical, physical or chemical process involving settlement of suspended solids or any other process in which the BOD of the incoming water is
SEEA-Defined Numerator (including IRWS data items)
FOR THE WHOLE ECONOMY:
Options for Defining 'Wastewater Safely Treated' (and IRWS data item formula)
1. Total return flows after (at least primary/secondary/tertiary) treatment (= H.a.1+H.a.2+H.a.3 or = H.a.2+H.a.3 or = H.a.3)
2. Total wastewater sent to sewerage industry (=F.3.1+F.4.1)
3. Total return flows of water after treatment by economic unit (= H.a)
BY ECONOMIC ACTIVITY: reduced by at least 20 per cent before discharge and the otal suspended solids of
Total Wastewater Safely Treated by industry can be defined for each ISIC category in the account - the degree to which the incoming water are reduced by at least 50 economic activity classifications are aggregated depends on per cent national preference / priorities.
-- Secondary treatment: A process, following primary treatment of water and generally
Defining Total Wastewater Safely treated by ISIC
IRWS data items):
(including involving biological or other treatment with a -- Wastewater sent to sewerage industry for treatment by secondary settlement or other process, that results in a BOD removal of at least 70 per each ISIC category (=F.3.1+F.4.1)
Flows of wastewater to the sewerage industry can be further disaggregated depending on the type of treatment received. cent and a COD removal of at least 75 per cent.
-- Tertiary treatment: A process, following secondary treatment, of removing nitrogen, phosphorous or any other pollutant affecting the quality or a specific use of water, such as microbiological pollution or colour. (For more detail see IRWS)
SEEA-Defined Denominator
FOR THE WHOLE ECONOMY:
Options for Defining 'Total Wastewater Generated' (and
IRWS data item formula)
1. Total Return Flows (= H)
2. Total Return Flows - Return Flows from Hydroelectric Power
Generation and Cooling Water (= H - H.i - H.v)
BY ECONOMIC ACTIVITY:
Total Wastewater Generated can be defined by each ISIC category in the account - the degree to which economic activity classifications are aggregated depends on national preference / priorities.
Defining 'Total Wastewater Generated' for each ISIC category
(and IRWS data item formula):
-- Wastewater to sewerage + Wastewater for Reuse + Return
Flows (= F.3 + F.4 + H)
For specific industries (such as ISIC 35 - Electricity, gas, steam and air conditioning supply) further alterations can be made to exclude certain categories of wastewater (e.g. wastewater from hydroelectric power, which is typically included in the SEEA).

Figure 4: Aligning Global Indicator 6.4.1 to SEEA definitions and methodology
SEEA Aligned Indicator
6.4.1 Water Productivity:
Sectoral: Value Added by ISIC /
Total Water Use (by ISIC)
Aggregate: GDP / Total Water Use
-- Note that Total Water Use can be replaced with 'Total Water
Consumption' or 'Total Water
Abstraction' depending on policy preference
SEEA Definition of Terms SEEA-Defined Numerator (including IRWS data items)
Water use: Water intake of an economic unit. FOR THE ECONOMY AS A WHOLE:
1. GDP (from the National Accounts) Water use is the sum of water use within the economy (i.e. one economic unit intaking water received through distribution from another economic unit. ) and water directly abstracted from the environment.
FOR INDIVIDUAL INDUSTRIES
1. Value Added for by each economic activitiy (in the System of National Accounts)
SEEA-Defined Denominator
FOR THE ECONOMY AS A WHOLE:
Defining 'Water Use/Abstraction/Consumption for the whole economy (and IRWS data items)
1. Total Water Use = The Sum of Water Abstraction across economic activities plus water that is received from foreign economic units. (=E + G.2 + G.4)
Water Abstraction: The amount of water that is removed from any source, either
Scope for Sectoral Disaggregation: For this indicator, sectoral efficiencies will be calculated for different ISIC permanently or temporarily, in a given period categories (i.e. industries) which are then aggregated for the of time for final consumption and production whole economy using the economy totals in the accounts. activities. Water used for hydroelectric power generation is also considered to be abstraction.
Development of SEEA accounts for water would mean that
Water Usecan be attributed by ISIC categories, in the same way that value added is attributed by ISIC categories in the national accounts.
Water Consumption: That part of water use which is not distributed to other economic units and does not return to the environment
(to water resources, sea and ocean) because during use it has been incorporated into products, or consumed by households or livestock. It is calculated as the difference between total use and total supply; thus, it may include losses due to evaporation occurring in distribution and apparent losses due to illegal tapping as well as malfunctioning metering. (note also referred to as 'final water use')
1. Total Water Abstraction = Sum of Abstraction of Water across all economic activities (=E)
3. Total Water Consumption = The sum of water consumption by economic activity. (=E + G - F - H)
FOR INDIVIDUAL INDUSTRIES
Defining 'Water Use/Abstraction/Consumption for each
Economic Activity (industries categorised by ISIC) (and IRWS data items)
1. Use of Water = Abstracted for Own Use + Water received by
Economic Units (=E.a + G)
2. Abstraction of Water (=E)
3. Water Consumption = Abstraction for Own Use + Water
Received by Economic Units - Supply of Water to Other
Economic Units - Total Returns (=E.a + G - F - H)

Figure 5: Aligning Global Indicator 6.4.2 to SEEA definitions and methodology
SEEA Aligned Indicator
6.4
Level of Water Stress (also known as water withdrawal intensity):
Total Abstraction / Total Actual
Renewable Water Resources
SEEA Definition of Terms
*Internal Renewable Water Resources
(IRWR): Average annual flow of rivers and recharge of groundwater generated from endogenous precipitation. (note: can be computed from the matrix of flows between the water resources)
*External Renewable Water Resources
(ERWR): Part of the country’s renewable water resources shared with neighbouring countries. Total external resources are the inflow from neighbouring countries
(transboundary groundwater and surface water inflows), and the relevant part of the shared lakes or border rivers.
*Total Actual Renewable Water Resources
(TARWR): The sum of IRWR and ERWR, taking into consideration the quantity of flow reserved to upstream and downstream countries through formal or informal agreements or treaties and reduction of flow due to upstream withdrawal. It corresponds to the maximum theoretical amount of water actually available for a country at a given moment.
SEEA-Defined Numerator (including IRWS data items)
FOR THE WHOLE ECONOMY:
1. Abstraction of Water (=E)
FOR INDIVIDUAL INDUSTRIES
The data items suggested can be calculated for each ISIC group to get figures for each industry.
1. Abstraction of Water (=E)
SEEA-Defined Denominator
Defining 'Total Actual Renwewable Water Resources'
1. Total Actual Renewable Water Resources = [Internal
Renewable Water Resources + Actual External Renewable
Water Resources] = [external inflows + surface water run-off + groundwater recharge - (overlap + treaty obligations)]
Where overlap is defined as natural transfers of groundwater to surface water - natural transfers of surface water to groundwater.
= (B.1.a + D.6 + B.2.1 + B.2.2.b - C.2.1.1.a.a - olp)

Data Items needed to define SEEA-aligned SDG indicators 6.3.1, 6.4.1 and 6.4.2
Data Item E. Abstraction of Water: The volume of water that is removed or collected by economic units directly from the environment within the territory of reference, per year.
This data item can be disaggregated along a number of lines:
--------BY SOURCE:
E.1 - From Inland Water Resources
E.1.1 - From surface water
E.1.2 - From ground water
E.1.3 - From soil water
E.2 - Collection of Precipitation
E.3 - Abstraction from the sea
------- BY PURPOSE
E.a - For own use: The volume of water abstracted and used by the same economic units within the territory of reference, per year.
E.b - For distribution: The volume of water abstracted by an economic unit for the purpose of being supplied to other economic units, often after treatment, within the territory of reference, per year.
Data Item F. Water supplied to Economic Units: The volume of water that is provided by one economic unit to another economic unit through mains, artificial open channels, sewers, drains, trucks or other means, per year. This excludes the losses of water in distribution which are included in data item I and the supply of bottled water (CPC, Ver. 2, 9410), which is one of the supplementary data items.
This can be disaggregated into:
F.1 - Water supplied by resident economic units to resident economic units
F.2 - Water exported to the rest of the world (water exports)
F.3 - Wastewater supplied by resident economic units to resident economic units
F.3.1 - For treatment or Disposal
F.3.2 - For Further Use
F.4 - Wastewater exported to the rest of the world (wastewater exports)
F.4.1 - For treatment or Disposal
F.4.2 - For Further Use
Data Item G. Water Received by Economic Units: The volume of water that is provided by one economic unit to another economic unit through mains, artificial open channels, sewers, drains, trucks or other means, per year. This excludes the losses of water in distribution which are included in data item I and the supply of bottled water
This can be disaggregated into:
G.1 - Water received by resident economic units from resident economic units
G.2 - Water received by resident economic units from the rest of the world (water imports)
G.3 - Wastewater received by resident economic units from resident economic units
G.3.1 - For treatment or Disposal
G.3.2 - For Further Use
G.4 - Wastewater received by resident economy units from the rest of the world (wastewater imports)

G.4.1 - For treatment or Disposal
G.4.2 - For Further Use
Data Item H. Returns of Water to the Environment by Economic Units: The volume of water that flows from economic units directly to inland water resources, to the sea or to land, within the territory of reference, per year. This includes urban storm water, losses due to leakage and burst pipes, irrigation water that infiltrates into groundwater or ends up in surface water, and the discharges of cooling water and water used for hydroelectricity generation. It excludes evaporation because evaporation is consumption.
This data item can be disaggregated along a number of ways;
---------- BY DESTINATION
H.1 - Returns to inland water resources
H.2 - Returns to the sea
H.1 - Returns to land
----------- BY TREATMENT
H.a - After treatment by economic unit
H.a.1 - After primary treatment
H.a.2 - After secondary treatment
H.a.3 - After tertiary treatment
H.b - Without treatment
---------- BY SOURCE
H.i - From hydroelectric power generation
H.ii - From irrigation
H.iii - From mining
H.iv - From urban run-off
H.v - From cooling water
H.vi - After being used for other purposes
Data Item B: Inflow of Water to a territory’s inland water resources: The volume of water that flows into a territory’s inland water resources, consisting of precipitation and inflows from upstream territories, per year.
B.1 – Precipitation
B.2 – Inflow of Water from Neighbouring territories
B.2.1 - Secured through treaties
B.2.2 – Not secured through treaties
Data Item C. Outflow of water from a territory’s inland water resources: The volume of water that flows out of a territory’s inland water resources, consisting of evapotranspiration from inland water resources and the outflow of surface water and groundwater to downstream territories and the sea, per year. This excludes water and sewage exported since these are flows between economic units and the rest of the world, after being abstracted from the environment.
C.1 - Evapotranspiration from inland water resources
C.2 - Outflow of water to neighbouring territories and the sea
C.2.1 - To neighbouring territories
C.2.2 - To the sea

Data Item D. Natural transfers with other resources in the territory: The volume of water that moves between inland water resources of a territory, per year.
D.1 - From surface water to groundwater
D.2 - From groundwater to surface water
D.3 - Between surface water resources
D.4 - Between ground water resources